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COBRA ANNOUNCES RESULTS FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 1993

 GOSHEN, Ind., Dec. 13 /PRNewswire/ -- Cobra Industries, Inc. (NYSE: COI) today released an earnings report for the period ended Sept. 30, 1993. Cobra commenced business on March 31, 1993 when it acquired substantially all of the operating assets of Cobra Industries, Inc. and Rockwood, Inc.
 Net sales for the quarter ended Sept. 30, 1993, increased by 12 percent to $65,674,000 from $58,829,000 for the predecessor companies for the quarter ended Sept. 30, 1992. Included in the 1992 sales was $3,198,000 of sales generated by the predecessor companies' Indiana van conversion division which was sold effective April 1, 1993. Adjusted for the sales of the van division, sales for the quarter increased by $10,043,000 or 18 percent. Net income for the quarter was $837,000 versus a loss of $1,565,000 for the corresponding quarter in 1992. The loss for the 1992 quarter is not comparable to the income for the 1993 quarter, since the 1992 results reflect a profit distribution payment to the stockholders of the predecessor companies. In addition, due to the profit distribution payment and the S corporation status of the predecessor Cobra Industries, Inc., the 1992 results do not include a provision for income taxes.
 For the six months ended Sept. 30, 1993, net sales declined 2 percent to $136,634,000 from $139,093,000 for the same period in 1992. Included in the 1992 sales was $6,814,000 of sales generated by the predecessor companies' Indiana van conversion division which was sold effective April 1, 1993. Adjusted for the sales of the van division, sales for the six months increased by $4,355,000 or 3 percent. Net income for the six months ended Sept. 30, 1993 was $1,534,000 versus a loss of $186,000 for the corresponding six months in 1992. The loss for the 1992 period is not comparable to the income for the 1993 period for the reasons listed above.
 Pro forma net income for the three and six months ended Sept. 30, 1993 was $1,312,000 and $2,484,000, respectively, compared to pro forma net income for the three and six months ended Sept. 30, 1992 of $1,038,000 and $2,733,000, respectively. Pro forma net income per share for the three and six months ended Sept. 30, 1993 was $0.24 and $0.46, respectively, compared to pro forma net income per share for the three and six months ended Sept. 30, 1992 of $0.19 and $0.50, respectively. The pro forma financial information includes adjustments to the actual results for the periods shown to reflect the acquisition of the predecessor companies at the beginning of the periods shown, the issuance of shares of common stock in connection with Cobra's initial public offering and the application of proceeds therefrom, the sale of the Indiana van conversion operations and the elimination of certain related operating expenses at the beginning of the periods shown, the elimination of the stockholder profit distribution payments, and the estimated income tax expense that would have been incurred if the predecessor Cobra Industries, Inc. had been treated as a consolidated, C corporation for federal and state income tax purposes with Rockwood, Inc.
 Both actual and pro forma gross margin and operating income for the three and six months ended Sept. 30, 1993 were negatively impacted by the decline in profitability of the company's motor home division resulting from downward price pressure in the motor home industry and additional production costs resulting from reorganization of the predecessor companies' separate motor home production operations. Management believes that in future periods, production efficiencies will result from the reorganization of the predecessor companies' motor home production operations, which will enhance motor home division gross margins.
 It is expected that the fiscal quarter ended Dec. 31, 1993 will be negatively affected compared to the corresponding 1992 quarter due to the inclusion in the 1992 quarter of significant sales and income resulting from sales during that period in regions affected by Hurricane Andrew. Additionally, management anticipates that results for the December, 1993 quarter will be negatively affected by lower than expected sales, the resulting higher, per unit production costs, and the costs associated with the continuation of the company's efforts to reorganize its motor home production operations. Management attributes much of the lower than expected sales level in the December quarter to an unanticipated decline in shipments to dealers of conventional travel trailer products. Management believes that reduced shipments of conventional travel trailers did not represent a reduction in the underlying level of demand for the company's products but, rather, reflected a decision by many of its dealers to defer placing orders for lower priced, conventional travel trailer products until the recently concluded Louisville, Ky. dealer show. Management believes that this abrupt change in dealer order patterns reflected the expectation of the dealer community that certain of the company's competitors would introduce new, price competitive products at Louisville. As discussed below, the company experienced a very positive response from its dealers in Louisville which reinforced management's belief that the change in order patterns was not indicative of an underlying decline in demand for its products. Lower than expected sales in the December quarter also resulted from the reduction in output of van chassis by one of the company's chassis suppliers which prevented fulfillment of orders and reduced sales in two of the company's divisions and the unexpected cost increase for motor home chassis incurred by the company and its competitors in the December quarter which served to further heighten the price pressures in the motor home industry.
 As a result of these factors, the company expects to report a loss for the quarter ended Dec. 31, 1993. The magnitude of the loss is not yet known, but is preliminary estimated to be $(0.02) per share, on a pro forma basis. The estimated loss is before the extraordinary expense resulting from a debt prepayment penalty charge, previously disclosed, of $1.5 million (net) incurred by the company in November, 1993 in connection with the reduction in debt with proceeds from the initial public offering.
 Notwithstanding the anticipated loss for the December quarter management believes that the company's outlook remains favorable. Sales order backlogs are currently 35 percent higher than this time a year ago, reflecting the enthusiastic reception to Cobra's RV products at the recently concluded Louisville dealer show and a rebound in demand for the company's conventional travel trailers. In addition, World Omni, Cobra's exclusive third party retail financing institution, received a very positive reception at Louisville and such financial products should assist the company's dealers in the retail sales of Cobra products and generate fee income for Cobra.
 Dale R. Glon, chairman and chief executive officer of Cobra, said, "Cobra's results of operations for the period ended Sept. 30, 1993 are in line with management's expectations. With the company's initial public offering completed, management is increasing its focus on the consolidation of the operations of the e?decessor companies into one fully integrated operation. Going forward, the company expects to benefit from this consolidation process. While we are disappointed with the current outlook for the December quarter, we are pleased with the response to our products in Louisville and anticipate a return to profitability in the first quarter of 1994 and continued positive response from our dealers throughout the coming year."
 Cobra is one of the five largest manufacturers of recreational vehicles in the United States and Canada. Cobra's RV products consist of multiple brands of travel trailers and motor homes sold under the Cobra and Rockwood names through a network of over 650 independent RV dealers.
 COBRA INDUSTRIES, INC.
 FINANCIAL STATEMENTS
 (UNAUDITED; DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
 ACTUAL (A)
 Three months ended Six months ended
 9/30/93 9/30/92 9/30/93 9/30/92
 Net Sales $65,674 $58,829 $136,634 $139,093
 Gross Profit 6,790 6,745 13,860 15,271
 Operating income 2,867 2,412 5,687 6,207
 Interest expense, net 1,422 450 2,907 1,178
 Income before profit
 distribution and
 income taxes 1,445 1,962 2,780 5,029
 Profit distribution --- 3,527 --- 5,215
 Provision for income
 taxes (B) 608 --- 1,246 ---
 Net income (loss) 837 (1,565) 1,534 (186)
 PRO FORMA (C)
 Three months ended Six months ended
 9/30/93 9/30/92 9/30/93 9/30/92
 Net Sales $65,674 $55,631 $136,634 $132,279
 Gross Profit 6,790 6,606 13,860 14,763
 Operating income 2,867 2,376 5,687 5,918
 Interest expense, net 642 558 1,347 1,220
 Net income before
 income taxes 2,225 1,818 4,340 4,698
 Provision for income
 taxes 913 780 1,856 1,965
 Net income (D) 1,312 1,038 2,484 2,733
 Shares outstanding 5,440 5,440 5,440 5,440
 Net income per
 common share .24 .19 .46 .50
 (A) -- The actual financial information for the three and six months ended Sept. 30, 1992 represents the combined results of the predecessor companies, Cobra Industries, Inc. and Rockwood, Inc.
 (B) -- The predecessor Cobra Industries, Inc. was treated as an S corporation for federal and state income taxes. As such, income was taxed at the shareholder level. Due to operating losses incurred, Rockwood, Inc. did not have any provision for income taxes. As a result, there is no provision for income taxes in the three month or six month actual 9/30/92 column.
 (C) -- Assumes that the company's acquisition of the predecessor companies and initial public offering of common stock occurred at the beginning of the relevant periods and reflects appropriate adjustments for the sale of predecessor companies' Indiana van division in April, 1993, decreased interest expense resulting from the retirement of a portion of the revolving credit facility and all of the subordinated indebtedness from the proceeds of the initial public stock offering, increased amortization, depreciation and certain other operating expenses resulting from the acquisition of the predecessor companies and a recalculated provision for income taxes.
 (D) -- Net income is before extraordinary charges resulting from an early redemption premium on the prepayment of certain subordinated notes, a write-off of the unamortized discount and certain deferred charges relative to the same subordinated notes, net of the corresponding tax benefit.
 -0- 12/13/93
 /CONTACT: Cobra Industries, 219-534-1418/
 (COI)


CO: Cobra Industries, Inc. ST: Indiana IN: AUT SU: ERN

BM-LC -- CL001 -- 3050 12/13/93 09:33 EST
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Date:Dec 13, 1993
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